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HomeMy WebLinkAbout145 - 09/01/1998 - AUTHORIZING A LONG-TERM LEASE OF REAL PROPERTY ADJACENT TO THE CIVIC CENTER PARKING STRUCTURE TO PHE ORDINANCE NO. 145, 1998 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING A LONG-TERM LEASE OF REAL PROPERTY ADJACENT TO THE CIVIC CENTER PARKING STRUCTURE TO PHELPS PROGRAM MANAGEMENT, LLC, FOR THE DEVELOPMENT OF COMMERCIAL SPACE ALONG WITH RELATED EASEMENTS WHEREAS,the City of Fort Collins owns that certain real property located on Block 21,in the City of Fort Collins, adjacent to the Civic Center Parking Structure (the "Parking Structure") property more particularly described in Exhibit "A," on file in the office of the City Clerk, and incorporated herein by this reference (the "Property"), and WHEREAS,in orderto provide for the development ofprivate commercial space compatible with and incorporated into the design of the Parking Structure(the"Commercial Space"),City staff has negotiated a long-term lease of the Property (the "Lease Agreement") to Phelps Program Management,LLC("PPM"),an affiliate of Hensel Phelps Construction Company,the design-builder of the Parking Structure under a separate contract with the City; and WHEREAS, the initial term of the Lease Agreement, including two ten-year extensions at PPM's sole option, will end in the year 2039, with a right of first option granted to PPM for an additional subsequent term,if the City chooses to continue to lease out the Commercial Space;and WHEREAS, the Lease Agreement provides for the coordination of the design and construction of the Commercial Space with that of the Parking Structure, and requires that all costs for such design and construction be borne by PPM; and WHEREAS, in exchange for said design and construction, along with responsibility for management of the Commercial Space during the term of the Lease Agreement, the Agreement provides that PPM shall be entitled to sublease units in the Commercial Space for use in a manner and consistent with those certain conditions set forth in the Lease Agreement; and WHEREAS, the Lease Agreement further grants to PPM access easements and cross easements required for its use of the Commercial Space.including terms for a shared wall and floor /ceiling (the 'Basements"); and WHEREAS,the Lease Agreement is consistent with the terms ofthe financing arrangements for the Parking Structure approved by the Council in Ordinance No. 128, 1998,and is consistent in all respects with the design of the Parking Structure as approved by the Council on July 21, 1998, by adoption of Resolution 98-111; and WHEREAS,the basic terms of the Lease Agreement are described in a Lease Outline,dated August 14, 1998, and on file in the office of the City Clerk(the "Lease Outline"); and WHEREAS,City staffhas determined that the proposed Lease Agreement terms for the lease of the Property will be beneficial to the City and will promote the public purpose of enhancing and contributing to a viable and active downtown and Civic Center in Fort Collins; and WHEREAS,pursuant to Section 23-114 of the Code of the City of Fort Collins,the Council is authorized to lease any and all interests in real property owned in the name of the City,provided that Council first finds that the lease is in the best interests of the City; and WHEREAS, Section 23-111 of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of real property owned by the City, provided the Council first finds by Ordinance that any sale or disposition of real property owned by the City is in the best interests of the City of Fort Collins. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby determines that the lease of Property to Phelps Program Management, LLC , pursuant to the terms of a lease consistent with the terms of this Ordinance and the Lease Outline, along with the grant of the Easements to PPM for the term of its lease, is in the best interest of the City. Section 2. That the City Manager is hereby authorized to enter into an agreement to lease the Property to Phelps Program Management,LLC,including a grant of access and cross easements reasonably required for the use of the Commercial Space,which agreement shall be in substantially the form of the Lease Agreement, dated September 15, 1998, a draft of which is on file in the office of the City Clerk, and which shall contain such other lease and easement provisions as the City Manager, in consultation with the City Attorney, deems appropriate to protect the interests of the City, consistent with the Lease Outline. Introduced, considered favorably on first reading, and ordered published this th day of August, A.D. 1998, and to be presented for final passage on 1st y of Septe er, D. 1998. Mayor ATTEST: - 4wlk VUA....AA L City Clerk , Passed and adopted on final reading this 1st day of Septerrjber,A.D. 1998. �. 1Vl QylR f ATTEST: City Clerk EXHIBIT A LEGAL DESCRIPTION OF COMMERCIAL SPACE The first floor of the building,from slab to slab of any improvements which are estimated to be approximately 14' 7"tall from the bottom slab of such improvements of the following Tract B, Block 21, CITY OF FORT COLLINS, State of Colorado as shown on Landstar Survey dated 8/10/98 of a replat of Lots 24 through 39, Block 21 which is more particularly described as: That portion of Lots 24 through 37, Block 21, City of Fort Collins, County of Larimer, State of Colorado. Considering the East line of Lots 24 through 39 of said Block 21 as bearing South 00 degrees 09 minutes 36 seconds East and with all bearings contained herein relative thereto. Commencing at the Northwest Corner of said Lot 24, thence South 14 degrees 33 minutes 10 seconds East, a distance of 18.97 feet to the True Point of Beginning; thence South 00 degrees 05 minutes 40 seconds East, a distance of 318.34 feet; thence North 89 degrees 45 minutes 20 seconds East, a distance of 51.13 feet; thence North 00 degrees 14 minutes 40 seconds West, a distance of 332.54 feet; thence South 89 degrees 45 minutes 20 seconds West, a distance of 30.67 feet; thence South 00 degrees 14 minutes 40 seconds East, a distance of 12.38 feet; thence South 89 degrees 45 minutes 20 seconds West, a distance of 15.16 feet; thence South 00 degrees 14 minutes 40 seconds East, a distance of 1.83 feet; thence South 89 degrees 45 minutes 20 seconds West, a distance of 4.46 feet to the Point of Beginning. County of Larimer, State of Colorado.